Vita Coco Company to Post Q2 Earnings: Things to Note

The Vita Coco Company, Inc. COCO is slated to report second-quarter 2024 results on Jul 31, before market open. The company is likely to report top and bottom-line growth when it posts the quarterly results.

The Zacks Consensus Estimate for the company's earnings is pegged at 31 cents per share, which indicates an increase of 19.2% from the year-ago quarter's reported figure. The consensus mark has remained stable in the past 30 days.

For second-quarter revenues, the consensus mark is pegged at $143.5 million, indicating a 2.7% rise from the year-ago quarter's reported figure.

In the last reported quarter, the company delivered an earnings surprise of 26.3%. It delivered a trailing four-quarter average earnings surprise of 25.3%.

Key Factors to Note

Vita Coco Company's quarterly performance is expected to have benefited from its strength in brands and the solid execution of its strategic efforts. Its consistent focus on driving growth in the coconut water category and expanding its share in the category appears encouraging. Its flagship brand has been performing well for a while. Apart from experiencing solid branded retail growth, the company has been witnessing higher private label coconut water volumes.

In addition, Vita Coco Company's commercial initiatives related to the Vita Coco multi-packs, Vita Coco Farmers Organic and Vita Coco Juice are likely to have contributed to its performance. The company's focus on expanding consumption occasions of coconut water is likely to have driven the category's and the flagship Vita Coco Coconut Water brand's performance. All the aforementioned strengths, coupled with its focus on growing the core business and a solid international business, are likely to have bolstered the bottom and top-line performance.

On the flip side, a tough macroeconomic landscape, including uncertainty related to the operating environment, global economies and geopolitical issues, is a concern. The company has been witnessing higher SG&A expenses for a while. Management, in its last earnings call, cited that the elevated certain ocean freight routes are anticipated to hurt the gross margin starting the second quarter and the impact is likely to have been severe in the impending quarter.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Vita Coco Company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.

Stocks With the Favorable Combination

Here are some companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.

Coty COTY has an Earnings ESP of +22.73% and a Zacks Rank of 3 at present.

The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COTY's quarterly earnings has remained unchanged in the past 30 days at 5 cents per share. The consensus mark for earnings indicates a 400% surge from the figure reported in the year-ago quarter.

The consensus estimate for quarterly revenues is pegged at $1.38 billion, which indicates a rise of 1.9% from the figure reported in the year-ago quarter. COTY delivered a trailing four-quarter average negative earnings surprise of 22.2%.

Clorox CLX currently has an Earnings ESP of +1.51% and a Zacks Rank of 3. The company is likely to register a top and bottom-line decline when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Clorox's quarterly revenues is pegged at $1.97 billion, indicating a decline of 2.3% from the figure reported in the prior-year quarter. The consensus mark for earnings has risen a penny in the past seven days.

The consensus estimate for Clorox's quarterly earnings of $1.54 per share implies a decline of 7.8% from the year-ago quarter's levels. However, Clorox has a trailing four-quarter earnings surprise of 128.5%, on average.

Colgate CL currently has an Earnings ESP of +0.33% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports second-quarter numbers. The Zacks Consensus Estimate for CL's quarterly revenues is pegged at $5 billion, which indicates growth of 4% from the prior-year quarter's reported figure.

The consensus estimate for quarterly earnings has remained unchanged in the past 30 days at 87 cents per share. The estimate indicates 13% growth from the year-ago reported quarter. CL delivered a trailing four-quarter average earnings surprise of 4.4%.

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